Question

Could you please answer these questions? 1) What are some farm programs that have been applied...

Could you please answer these questions?

1) What are some farm programs that have been applied for to the soybean commodity in the past or currently?

2) Explain the following:

A) how the farm programs work?
B) who get the payment (eligibility for the payment) or any limitations?
C) was under what condition the payment was triggered.
D) Wirte the sources/ references
Business   Economics   
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Homework Answers

Answer #1

1. According to the 2014 Farm Bill, certain farm programs have been applied for to thesoybean commodity. They include,

-Price Loss Coverage - PLC payments

-Agriculture Risk Coverage - ARC payments

-Marketing Assistance Loans - MALs

2.

- PLC is used when the national average farm price for a coveted commodity is below the reference price (statutorily decided)

-ARC is triggered when crop revenue is below guaranteed level

-MALs offer interim financing for the loan commodities

-The enacted 2014 farm bill sets a $125,000 per person cap on the total of PLC, ARC, marketing loan gains and loan deficiency payments.

-The limit applies to the total from all covered commodities except peanuts, which has a separate $125,000 limit.

-Also, to be eligible for payments, persons must be “actively engaged” in farming.

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